Commercial House on Summer
For Sale
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4029 Summer Ave, Memphis, TN 38122
Commercial house on Summer Avenue, suitable for office or retail.
Property Size1,181 SF
Price / SF$296.36
Days on Market812
Property Features for 4029 Summer Ave
General Information
Standard status
Active
Size
1,181 SF
Class
C
Property subtype
Retail, Office, Special Purpose
Zoning
RMM
Investment Type
Owner/User
Building Details
Year Built
1940
Buildings
1
Stories
1
Listing Agency:
MMIC Inc
(901) 761-1002
Listed By:
Arthur Malkin · License #TN 253811
Source:
Crexi
Added: May 22, 2024
Changed: Aug 8
Last Checked: Aug 8 at 11:44AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of MMIC Inc
Investment Insights
Based on property information with market context.
This 1,181-square-foot commercial house is located on Summer Avenue. Formerly used as a Chiropractor’s office, the property is being sold “as is”. Lease options will be considered starting at $1,500 per month, “as is”, with the tenant responsible for all maintenance, including the roof. The property is suitable for medical office space, general office use, retail space, or other commercial real estate ventures.
Key Highlights
- Located on sought‑after Summer Avenue.
- Suitable for commercial use.
- Previously used as a Chiropractor’s office.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$18,069
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.16%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$361,380
$361.4K
Cap Rate 7%
$258,129
$258.1K
Cap Rate 9%
$200,767
$200.8K
Market Conditions
NOI Build-Up for 1,181 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$28.3K $24.00/SF
− Vacancy
−$4.3K −$3.60/SF
EGI
$24.1K $20.40/SF
− OpEx
−$6.0K −$5.10/SF
NOI
$18.1K $15.30/SF
Area
Memphis, TN
Vacancy
15.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$361,380
Cap Rate 7%
$258,129
Cap Rate 9%
$200,767
Alternative Uses
Best Use
Office B
$258.1K
$225.9K – $301.2K
NOI $18,069 @ 7.0% cap · market cap 5.16%
Second Best
Healthcare Medical
$244.5K
$214.0K – $285.3K
NOI $17,117 @ 7.0% cap · market cap 4.89%
Theoretical Best
Office A
$349.0K
$305.4K – $407.2K
NOI $24,433 @ 7.0% cap · market cap 6.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
508
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 38122, TN
26,432
Population
10,201
Households
2.6
Avg Household Size
33
Median Age
22%
College-Educated
74%
High-School Grad
6.8 sq mi
ZIP Area
3,887
Density / Sq Mi
$45,456
Median Household Income
$32,760
Median Earnings
$1,127
Median Rent
$108,200
Median Home Value
Market
Vacancy Rate% for Office in Memphis, TN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Commercial house on Summer Avenue, suitable for office or retail.
Where is this medical office space located?
The property is located at 4029 Summer Ave Memphis, TN.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: Located on sought‑after Summer Avenue.; Suitable for commercial use.; Previously used as a Chiropractor’s office.
